ST GEORGE MINING LIMITED — Capital/Financing Update 2019

Mar 17, 2019

18 March 2019

DRILLING AT MT ALEXANDER – STRONG RESULTS CONTINUE

HIGHLIGHTS:

Drilling is Underway at Fairbridge:

• Two drill holes completed at the new Fairbridge Prospect with thick intersections of ultramafic and nickel sulphides
• Early results add support to the potential for the highly chargeable anomalies at Fairbridge to represent nickel sulphide mineralisation

Extensional Drilling Identifies New Zone of Nickel Sulphide Mineralisation:

• Three wide-spaced drill holes completed in the undrilled 500m strike between the Stricklands and Investigators Prospects on the Cathedrals Belt
• All three drill holes intersected ultramafic with nickel sulphides confirming a new and wide zone of mineralisation that is open to the north, south and at depth
• Downhole electromagnetic (DHEM) surveys underway to identify any conductive targets around the drill holes

DHEM Surveys at West End Identify Off-Hole EM Conductors:

• Two off-hole EM conductors identified from DHEM surveys completed at West End Prospect
• Further drilling to be scheduled for West End to test the DHEM conductors and extend the line of drill holes westwards along the Cathedrals Belt to the Ida Fault

Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ) ("St George" or "the Company") is pleased to announce further strong results from the drill programme in progress at the Mt Alexander Project, located near Leonora in the north Eastern Goldfields.

Two drill holes – MARC093 and MARC094 – have been completed at the eastern margin of the Fairbridge Prospect to test a large chargeable anomaly that is interpreted to be the western extension of the mineralised ultramafic at the Cathedrals Prospect. Both drill holes intersected thick intervals of ultramafic rocks and nickel sulphide mineralisation.

MARC093 was completed to a downhole depth of 178m, and intersected approximately 7m of disseminated nickel sulphides in ultramafic from 60m downhole. A second ultramafic unit was observed at 150m downhole.

MARC094 was drilled to the north of MARC093, and was completed to a downhole depth of 226m. MARC094 intersected approximately 5m of disseminated and blebby nickel sulphides from 90m downhole, and then another 4m of coarse nickel sulphides – including network textured and large blebby sulphides – from 197m downhole.

These interim results demonstrate that the mineralised ultramafic dips to the north, with stronger nickel sulphide mineralisation at depth. Significantly, a large chargeable anomaly has been modelled to the north of MARC094, at a vertical depth from surface of approximately 250m. The first ever drilling of this large anomaly is scheduled for this week.

The above drill hole observations are based on geological logging and are preliminary in nature. A conclusive determination of any significant intersection in the drill holes is subject to laboratory assays, which are pending.

St George Mining's Executive Chairman, John Prineas said:

"The drill programme at Mt Alexander continues to deliver exciting results and further hits of thick nickel sulphide mineralisation.

"Initial drill results at Fairbridge fit very well with our geological model for the Cathedrals Belt, which interprets the ultramafic unit dipping to the north with potential for further mineralisation down-plunge.

"This is encouraging for the remaining nickel sulphide drill targets at Fairbridge – particularly the large chargeable anomalies recently identified down plunge of the known mineralisation at the Cathedrals Belt.

"At West End, the downhole EM surveys continue to identify conductive material. This supports the potential continuation of the mineralised ultramafic to the west of Investigators and increases our confidence to complete a series of drill holes all the way to the Ida Fault in the west.

"Extensional drilling between Investigators and Stricklands has also delivered success with a new zone of nickel sulphide mineralisation discovered in this previously undrilled 500m east-west strike of the Cathedrals Belt.

"This kind of geologically driven and systematic exploration is the foundation for most major discoveries. We are very pleased with the positive results achieved already in the current drill programme and the potential for more significant results as the drilling continues over the coming weeks."

FAIRBRIDGE PROSPECT – CONDUCTIVE TARGETS WITHIN MINERALISED CORRIDOR

The Fairbridge Prospect covers a 1,000m east-west strike of the Cathedrals Belt and lies between the Stricklands and Cathedrals Prospects, where significant discoveries of nickel-copper sulphides have already been made by St George.

A number of chargeable anomalies have been identified at Fairbridge from geophysical surveys recently completed by St George. These anomalies are high priority drill targets, and are discussed in detail in our ASX Release dated 7 March 2019 Nickel-Copper Sulphide Drilling at Mt Alexander. The anomalies may potentially be associated with the numerous sulphide gossans observed at Fairbridge, with several anomalies situated below these gossans.

Two large chargeable anomalies are situated on the eastern and western margins of Fairbridge and to the north of known high-grade nickel-copper sulphides at the Cathedrals and Stricklands Prospects, respectively. The large anomalies may represent down-plunge extensions of the known mineralisation. Figure 1 illustrates the chargeable anomalies at Fairbridge and the location of the drilling underway.

MARC093 and MARC094, as discussed above, were drilled in the western margin of Cathedrals and intersected two ultramafic units with nickel sulphide mineralisation – giving encouragement that the large chargeable anomaly to the north of the drill holes may represent a down-plunge extension of this mineralisation.

MARC092 was drilled to a downhole depth of 120m, intersecting mafic rocks from surface to 40m downhole and then mostly granite. The hole is interpreted to have intersected remnant greenstones from the main Mt Alexander Belt and the mafic dyke that lies within the Cathedrals fault, a setting where nickel sulphides have been previously identified elsewhere along the Cathedrals Belt.

DHEM surveys will be completed in all drill holes to investigate for conductive material around the holes.

Figure 1 – map of the Fairbridge Prospect highlighting new geophysical targets as well as planned and completed drill holes (set against X component Channel 28 MMR data overlaying RTP magnetics).

Figure 2 – Cross section illustrating the large chargeable anomaly down-plunge of known mineralisation on the western margin of Fairbridge. The section looks west along 233700E showing interpreted ultramafic and nickel-copper sulphide mineralisation (from drilling data), existing drill holes (depth in metres) and IP (Chargeability) 3D iso-shells (>10mV/V).

EXTENSIONAL DRILLING AT INVESTIGATORS PROSPECT

Three wide-spaced drill holes were completed in the undrilled section of the Cathedrals Belt between the Investigators and Stricklands Prospects to test for potential extensions of the high-grade mineralisation already discovered at each of those prospects.

All three drill holes intersected ultramafic and nickel sulphide mineralisation, confirming a new nickel sulphide zone in this previously unexplored 500m east-west strike of the Cathedrals Belt.

Each of MARC089, MARC090 and MARC091 was completed to a downhole depth of 148m with significant intersections as follows:

MARC089 – 10m of disseminated nickel sulphides in ultramafic from 66m downhole MARC090 – 3m of disseminated nickel sulphides in ultramafic from 52m downhole MARC091 – 5m of disseminated nickel sulphides in ultramafic from 59m downhole

The area to the north of the drill holes is a priority exploration area, and interpreted to have potential for down-plunge extensions of the mineralisation seen in the latest drill holes. Surface geophysics may have been less effective in screening for high-grade mineralisation in this area due to the depth, geometry and/or nature of the potential ore bodies.

Figure 3 – map showing the latest extensional drilling at the Investigators and Stricklands Prospects. The background is SAMSON FLEM CH20 overlaying RTP magnetic data.

A further three drill holes were completed in this area as part of the extensional drilling at Investigators, with each hole completed to a downhole depth of 148m. MARC085 and MARC086 intersected the Proterozoic Mafic Dyke that is frequently found along the Cathedrals fault, and known to be proximal to nickel sulphides elsewhere in the Cathedrals Belt.

MARC087 intersected 8m of disseminated nickel sulphides in ultramafic from 64m downhole.

DHEM surveys will be completed in the drill holes to assist in identifying any potential mineralisation around the drill holes. Further drilling and/or geophysical surveys will be planned for this new zone of mineralisation once the results of the DHEM surveys are reviewed.

WEST END PROSPECT – CONDUCTORS IDENTIFIED

Results from the DHEM surveys carried out in four of the six drill holes completed at West End have identified two off-hole anomalies for follow-up drilling.

Six drill holes were completed at West End, and all six intersected the fault structure that bounds the mineralised ultramafic of the Cathedrals Belt. This supports the interpretation that the mineralised corridor of the Cathedrals Belt may continue westwards from Investigators to the Ida Fault.

The identification of the off-hole EM anomalies further supports the potential for this western extension of the Cathedrals Belt to host nickel sulphide mineralisation.

Figure 4 illustrates the drilling at West End and the location of the off-hole anomalies. Significantly, the off-hole anomalies are broadly co-incident with an EM anomaly observed in the SAMSON fixed loop EM survey completed in 2017. This target has never been drilled.

These early exploration results at West End are encouraging and warrant further drilling to test the continuation of the Cathedrals Belt towards the west.

Figure 4 – map showing the latest drilling at the West End Prospect and at the western margin of the Investigators Prospect. The background is SAMSON FLEM CH20 and RTP magnetic data.

Figure 4 also illustrates the location of three drill holes completed in the western margin of the Investigators Prospect.

MARC080 and MARC081 were completed to a downhole depth of 148m, and MARC088 to a downhole depth of 200m.

MARC081 intersected largely granite. MARC080 and MARC088 intersected mineralisation as follows:

MARC080 – 10m of disseminated nickel sulphides in ultramafic from 96m downhole MARC088 – 7m of disseminated nickel sulphides in ultramafic from 84m downhole

DHEM surveys in these drill holes are pending to assess the potential for further mineralisation around the holes.

Figure 5 - map of the tenement package at Mt Alexander set against RTP magnetic data, showing the key prospects and targets under exploration.

DRILLNG PROGRAMME

Table 1 lists the completed holes in the current reverse circulation (RC) drill programme.

Table 2 lists the remaining planned drill holes for the programme, in the proposed order of drilling. These planned holes may change in response to ongoing exploration results.

Summaries of drill hole results noted above are based on geological logging. These are preliminary results and a conclusive determination of any significant intersection, including the nickel, copper, cobalt and PGE values of the sulphide mineralisation intersected, will be confirmed when laboratory assays are available.

Based on the intersection angle of the drilling with the modelled ultramafic unit, downhole widths are interpreted to be close to true widths.

Hole ID	Prospect	East	North	RL	Depth	Azimuth	Dip
MARC074	West End	230700	6806368	420	144	180	-60
MARC075	West End	230701	6806454	418	197	180	-60
MARC076	West End	230600	6806360	420	148	180	-60
MARC077	West End	230600	6806460	414	197	180	-60
MARC078	West End	230500	6806360	419	155	180	-60
MARC079	West End	230500	6806461	419	212	180	-60
MARC080	Investigators	230826	6806356	418	148	180	-60
MARC081	Investigators	230929	6806401	420	148	180	-60
MARC082	Investigators	231238	6806364	420	148	180	-60
MARC083	Investigators	231314	6806353	422	148	180	-60
MARC084	Investigators	231666	6806460	426	148	180	-60
MARC085	Investigators	231768	6806480	428	148	180	-60
MARC086	Investigators	231871	6806500	429	148	180	-60
MARC087	Investigators	231964	6806490	429	148	180	-60
MARC088	Investigators	230775	6806450	423	200	180	-60
MARC089	Stricklands (West)	232174	6806520	434	148	180	-70
MARC090	Stricklands (West)	232256	6806490	435	148	180	-70
MARC091	Stricklands (West)	232355	6806550	440	148	180	-70
MARC092	Fairbridge	232808	6806710	437	118	155	-65
MARC093	Cathedrals (West)	233645	6806990	420	178	190	-70
MARC094	Cathedrals (West)	233661	6807060	420	226	190	-70

Table 1 – Table of completed drill holes

Planned	Prospect	East	North	RL	Planned	Azimuth	Dip
Hole ID					Depth
CTRC1	Cathedrals (North)	233758	6807330	422	300	180	-70
CWRC3	Cathedrals (West)	233515	6807050	420	250	190	-70
CWRC4	Cathedrals (West)	233590	6807000	420	200	190	-70
CWRC5	Cathedrals (West)	233599	6807060	420	250	190	-70
FBRC3	Fairbridge	233090	6806700	439	200	335	-50
FBRC4	Fairbridge	233163	6806730	436	200	335	-50
FBRC5	Fairbridge	233255	6806770	433	200	335	-50
FBRC6	Fairbridge	233352	6806800	430	200	335	-50
FBRC7	Fairbridge	233446	6806830	428	200	335	-50
FBRC11	Fairbridge	232953	6806750	433	150	180	-65
SLRC1	Sultans	238491	6799020	460	250	250	-60
SLRC4	Sultans	238419	6799040	461	200	250	-60
SLRC7	Sultans	238529	6798920	460	300	250	-60
SLRC8	Sultans	238497	6798810	460	200	250	-60
SNRC1	Stricklands (North)	232879	6807180	420	250	180	-65
WMRC6	Wills More	239032	6797610	459	350	250	-60
WMRC7	Wills More	238991	6797680	459	300	250	-60

Table 2 – Summary of drill hole details for planned drilling in remainder of the RC programme

About the Mt Alexander Project:

The Mt Alexander Project is located 120km south-southwest of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits. The Project comprises five granted exploration licences – E29/638, E29/548, E29/962, E29/954 and E29/972.

The Cathedrals, Stricklands and Investigators nickel-copper-cobalt-PGE discoveries are located on E29/638, which is held in joint venture by St George Mining Limited (75%) and Western Areas Limited (25%). St George is the Manager of the Project, with Western Areas retaining a 25% non-contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine.

For further information, please contact: John Prineas Executive Chairman St George Mining Limited +61 (0) 411 421 253 John.prineas@stgm.com.au

Peter Klinger Media and Investor Relations Cannings Purple +61 (0) 411 251 540 pklinger@canningspurple.com.au

Competent Person Statement:

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Dave O'Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O'Neill is employed by St George Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the Company.

Mr O'Neill has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr O'Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The following section is provided for compliance with requirements for the reporting of exploration results under the JORC Code, 2012 Edition.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments,etc). These examples should not be taken aslimiting the broad meaning of sampling.	Drilling programmes are completed by reverse circulation (RC)drilling and diamond core drilling.
		Diamond Core Sampling: The sections of the core that are selectedfor assaying are marked up and then recorded on a sample sheet forcutting and sampling at the certified assay laboratory. Samples of HQor NQ2 core are cut just to the right of the orientation line whereavailable using a diamond core saw, with half core sampledlengthways for assay.
		RC Sampling: All samples from the RC drilling are taken as 1m samplesfor laboratory assaying.
		Appropriate QAQC samples (standards, blanks and duplicates) areinserted into the sequences as per industry best practice. Samples arecollected using cone or riffle splitter. Geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays.
		Onsite XRF analysis is conducted on the fines from RC chips using ahand‐held Olympus Innov‐X Spectrum Analyser. These results areused for onsite interpretation and preliminary assessment subject tofinal geochemical analysis by laboratory assays.
	Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools orsystems used.	RC Sampling: Samples are taken on a one metre basis and collectedusing uniquely numbered calico bags. The remaining material for thatmetre is collected and stored in a green plastic bag marked with thatspecific metre interval. The cyclone is cleaned with compressed airafter each plastic and calico sample bag is removed. If wet sample orclays are encountered then the cyclone is opened and cleanedmanually and with the aid of a compressed air gun. A blank sample isinserted at the beginning of each hole, and a duplicate sample istaken every 50th sample. A certified sample standard is also addedaccording to geology, but at no more than 1:50 samples.
		A large auxiliary compressor ("air‐pack") is mounted on a separatetruck and the airstream is connected to the rig. This provides anaddition to the compressed air supplied by the in‐built compressorsmounted on the drill rig itself. This auxiliary compressor maximisesthe sample return through restricting air pressure loss, especially indeeper holes.
		Geological logging of RC chips is completed at site with representativechips being stored in drill chip trays. Downhole surveys of dip andazimuth are conducted using a single shot camera every 30m, andusing a downhole Gyro when required, to detect deviations of thehole from the planned dip and azimuth. The drill‐hole collar locationsare recorded using a hand‐held GPS, which has an accuracy of +/‐ 5m.All drill‐hole collars will be surveyed to a greater degree of accuracyusing a certified surveyor at a later date.
		Diamond Core Sampling: For diamond core samples, certified samplestandards were added as every 25th sample. Core recoverycalculations are made through a reconciliation of the actual core andthe driller's records. Downhole surveys of dip and azimuth wereconducted using a single shot camera every 30m to detect deviationsof the hole from the planned dip and azimuth. The drill‐hole collarlocations are recorded using a hand‐held GPS, which has an accuracyof +/‐ 5m. All drill‐hole collars will be surveyed to a greater degree ofaccuracy using a certified surveyor at a later date.

Criteria	JORC Code explanation	Commentary
	Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work hasbeen done this would be relatively simple (eg'reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In othercases more explanation may be required, suchas where there is coarse gold that has inherentsampling problems. Unusual commodities ormineralisation types (eg submarine nodules)may warrant disclosure of detailed information.	RC Sampling: A 1m composite sample is taken from the bulk sampleof RC chips that may weigh in excess of 40 kg. Each sample collectedfor assay typically weighs 2‐3kg, and once dried, is prepared for thelaboratory as per the Diamond samples below.Diamond Core Sampling: Diamond core (both HQ and NQ2) is half‐core sampled to geological boundaries no more than 1.5m and no lessthan 10cm. Samples less than 3kg are crushed to 10mm, dried andthen pulverised to 75µm. Samples greater than 3kg are first crushedto 10mm then finely crushed to 3mm and input into the rotarysplitters to produce a consistent output weight for pulverisation.Pulverisation produces a 40g charge for fire assay. Elementsdetermined from fire assay are gold (Au), platinum (Pt) and palladium(Pd) with a 1ppb detection limit. To determine other PGEconcentrations (Rh, Ru, Os, Ir) a 25g charge for nickel sulphide collectfire assay is used with a 1ppb detection limit.Other elements will be analysed using an acid digest and an ICP finish.These elements are: Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe, K, Li, Mg, Mn,Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn. The sample is digestedwith nitric, hydrochloric, hydrofluoric and perchloric acids to effect asnear to total solubility of the sample as possible. The sample is thenanalysed using ICP‐AES or ICP‐MS.
		LOI (Loss on Ignition) will be completed on selected samples todetermine the percentage of volatiles released during heating ofsamples to 1000°C.
Drillingtechniques	Drill type (eg core, reverse circulation, open‐holehammer, rotary air blast, auger, Bangka, sonic,etc) and details (eg core diametre, triple orstandard tube, depth of diamond tails, face‐sampling bit or other type, whether core isoriented and if so, by what method, etc).	Diamond Core Sampling: The collars of the diamond holes weredrilled using RC drilling down through the regolith to the point ofrefusal or to a level considered geologically significant to change tocore. The hole was then continued using HQ diamond core until thedrillers determined that a change to NQ2 coring was required.The core is oriented and marked by the drillers. The core is orientedusing ACT Mk II electric core orientation.
		RC Sampling: The RC drilling uses a 140 mm diametre face hammertool. High capacity air compressors on the drill rig are used to ensurea continuously sealed and high pressure system during drilling tomaximise the recovery of the drill cuttings, and to ensure chipsremain dry to the maximum extent possible.
Drill samplerecovery	Method of recording and assessing core andchip sample recoveries and results assessed.	Diamond Core Sampling: Diamond core recoveries are recordedduring drilling and reconciled during the core processing andgeological logging. The core length recovered is measured for eachrun and recorded which is used to calculate core recovery as apercentage.
		RC Sampling: RC samples are visually checked for recovery, moistureand contamination. Geological logging is completed at site withrepresentative RC chips stored in chip trays.
	Measures taken to maximise sample recoveryand ensure representative nature of thesamples.	RC Sampling: Samples are collected using cone or riffle splitter.Geological logging of RC chips is completed at site with representativechips being stored in drill chip trays.
		Diamond Core Sampling: Measures taken to maximise core recoveryinclude using appropriate core diametre and shorter barrel lengththrough the weathered zone, which at Cathedrals and Investigators ismostly <20m and Stricklands <40m depth. Primary locations for coreloss in fresh rock are on geological contacts and structural zones, and

Criteria	JORC Code explanation	Commentary
		drill techniques are adjusted accordingly, and if possible these zonesare predicted from the geological modelling.
	Whether a relationship exists between samplerecovery and grade and whether sample biasmay have occurred due to preferential loss/gain	To date, no sample recovery issues have yet been identified thatwould impact on potential sample bias in the competent fresh rocksthat host the mineralised sulphide intervals.
	of fine/coarse material.	The nature of magmatic sulphide distribution hosted by thecompetent and consistent rocks hosting any mineralised intervals areconsidered to significantly reduce any possible issue of sample biasdue to material loss or gain.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to a levelof detail to support appropriate MineralResourceestimation,miningstudiesandmetallurgical studies.	Geological logging is carried out on all drill holes with lithology,alteration, mineralisation, structure and veining recorded.
	Whether logging is qualitative or quantitative innature.Core(orcostean,channel,etc)photography.	Logging of diamond core and RC samples records lithology,mineralogy, mineralisation, structures (core only), weathering, colourand other noticeable features. Core was photographed in both dryand wet form.
	The total length and percentage of the relevantintersections logged.	All drill holes are geologically logged in full and detailed litho‐geochemical information is collected by the field XRF unit. The datarelating to the elements analysed is used to determine furtherinformation regarding the detailed rock composition.
Sub‐samplingtechniques andsamplepreparation	If core, whether cut or sawn and whetherquarter, half or all core taken.	Diamond Core Sampling: Diamond core was drilled with HQ and NQ2size and sampled as complete half core to produce a bulk sample foranalysis. Intervals selected varied from 0.3 – 1m (maximum) The HQand NQ2 core is cut in half length ways just to the right of theorientation line where available using a diamond core saw. Allsamples are collected from the same side of the core wherepracticable.
		Assay preparation procedures ensure the entire sample is pulverisedto 75 microns before the sub‐sample is taken. This removes thepotential for the significant sub‐sampling bias that can be introducedat this stage.
	If non‐core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	RC samples are collected in dry form. Samples are collected usingcone or riffle splitter when available. Geological logging of RC chips iscompleted at site with representative chips being stored in drill chiptrays.
	For all sample types, the nature, quality andappropriateness of the sample preparation	RC Sampling: Sample preparation for RC chips follows a standardprotocol.
	technique.	The entire sample is pulverised to 75µm using LM5 pulverising mills.Samples are dried, crushed and pulverized to produce a homogenousrepresentative sub‐sample for analysis. A grind quality target of 90%passing 75µm is used.
	Quality control procedures adopted for all sub‐sampling stages to maximise representivity ofsamples.	Quality control procedures include submission of Certified ReferenceMaterials (standards), duplicates and blanks with each sample batch.QAQC results are routinely reviewed to identify and resolve anyissues.
		RC Sampling: Field QC procedures maximise representivity of RCsamples and involve the use of certified reference material as assaystandards, along with blanks, duplicates and barren washes.
		Diamond Core Sampling: Drill core is cut in half lengthways and thetotal half‐core submitted as the sample. This meets industry

Criteria	JORC Code explanation	Commentary
		standards where 50% of the total sample taken from the diamondcore is submitted.
	Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second‐half sampling.	Duplicate samples are selected during sampling. Samples comprisetwo quarter core samples for Diamond Core. Duplicate RC samplesare captured using two separate sampling apertures on the splitter.
	Whether sample sizes are appropriate to thegrain size of the material being sampled.	The sample sizes are considered to be appropriate to correctlyrepresent base metal sulphide mineralisation and associated geologybased on: the style of mineralisation (massive and disseminatedsulphides), the thickness and consistency of the intersections and thesampling methodology.
Quality ofassay data andlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal.	For RC sampling, a 30 gram sample will be fire assayed for gold,platinum and palladium. The detection range for gold is 1 – 2000ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This isbelieved to be an appropriate detection level for the levels of theseelements within this specific mineral environment. However, shouldAu, Pt or Pd levels reported exceed these levels; an alternative assaymethod will be selected.
		All other metals will be analysed using an acid digest and an ICP finish.The sample is digested with nitric, hydrochloric, hydrofluoric andperchloric acids to effect as near to total solubility of the sample aspossible. The solution containing samples of interest, including thosethat need further review, will then be presented to an ICP‐OES for thefurther quantification of the selected elements.
		Diamond core samples are analysed for Au, Pt and Pd using a 40g leadcollection fire assay; for Rh, Ru, Os, Ir using a 25g nickel sulphidecollection fire assay; and for Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe, K, Li, Mg,Mn, Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn using a four acid digestand ICP‐AES or MS finish. The assay method and detection limits areappropriate for analysis of the elements required.
	For geophysical tools, spectrometres, handheldXRF instruments, etc, the parametres used indetermining the analysis including instrumentmake and model, reading times, calibrationsfactors applied and their derivation, etc.	A handheld XRF instrument (Olympus Innov‐X Spectrum Analyser) isused to systematically analyse the drill core and RC sample pilesonsite. One reading is taken per metre, however for any core sampleswith matrix or massive sulphide mineralisation then multiple samplesare taken at set intervals per metre. The instruments are serviced andcalibrated at least once a year. Field calibration of the XRF instrumentusing standards is periodically performed (usually daily).
		The handheld XRF results are only used for preliminary assessmentand reporting of element compositions, prior to the receipt of assayresults from the certified laboratory.
	Nature of quality control procedures adopted(eg standards, blanks, duplicates, externallaboratory checks) and whether acceptablelevels of accuracy (ie lack of bias) and precision	Laboratory QAQC involves the use of internal lab standards usingcertified reference material (CRMs), blanks and pulp duplicates aspart of in‐house procedures. The Company also submits a suite ofCRMs, blanks and selects appropriate samples for duplicates.
	have been established.	Sample preparation checks for fineness are performed by thelaboratory to ensure the grind size of 90% passing 75µm is beingattained.
Verification ofsampling andassaying	The verification of significant intersections byeither independent or alternative companypersonnel.	Significant intersections are verified by the Company's TechnicalDirector and Consulting Field Geologist.
	The use of twinned holes.	No twinned holes have been planned for the current drillprogramme.

Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	Primary data is captured onto a laptop using acQuire software andincludes geological logging, sample data and QA/QC information. Thisdata, together with the assay data, is entered into the St GeorgeMining central SQL database which is managed by externalconsultants.
	Discuss any adjustment to assay data.	No adjustments or calibrations will be made to any primary assay datacollected for the purpose of reporting assay grades and mineralisedintervals. For the geological analysis, standards and recognisedfactors may be used to calculate the oxide form assayed elements, orto calculate volatile free mineral levels in rocks.
Location ofdata points	Accuracy and quality of surveys used to locatedrill holes (collar and down‐hole surveys),	Drill holes have been located and pegged using a DGPS system withan expected accuracy of +/‐5m for easting, northing and elevation.
	trenches, mine workings and other locationsused in Mineral Resource estimation.	Downhole surveys are conducted using a single shot cameraapproximately every 30m or dowhole Gyro during drilling to recordand monitor deviations of the hole from the planned dip and azimuth.Post‐drilling downhole gyroscopic surveys will be conducted, whichprovide more accurate survey results.
	Specification of the grid system used.	The grid system used is GDA94, MGA Zone 51.
	Quality and adequacy of topographic control.	Elevation data has been acquired using DGPS surveying at individualcollar locations and entered into the central database. Atopographic surface has been created using this elevation data.
Data spacinganddistribution	Data spacing for reporting of ExplorationResults.	The spacing and distribution of holes is not relevant to the drillingprograms which are at the exploration stage rather than definitiondrilling.
	Whether the data spacing and distribution issufficient to establish the degree of geologicaland grade continuity appropriate for theMineral Resource and Ore Reserve estimationprocedure(s) and classifications applied.	The completed drilling at the Project is not sufficient to establish thedegree of geological and grade continuity to support the definition ofMineral Resource and Reserves and the classifications applied underthe 2012 JORC code.
	Whether sample compositing has been applied.	No compositing has been applied to the exploration results.
Orientation ofdata in relationto geologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures andthe extent to which this is known, consideringthe deposit type.	The drill holes are drilled to intersect the modelled mineralised zonesat a near perpendicular orientation (unless otherwise stated).However, the orientation of key structures may be locally variableand any relationship to mineralisation has yet to be identified.
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	No orientation based sampling bias has been identified in the datato date.
Samplesecurity	The measures taken to ensure sample security.	Chain of Custody is managed by the Company until samples pass to aduly certified assay laboratory for subsampling and assaying. The RCsample bags are stored on secure sites and delivered to the assaylaboratory by the Company or a competent agent. When in transit,they are kept in locked premises. Transport logs have been set up totrack the progress of samples. The chain of custody passes upondelivery of the samples to the assay laboratory.
Audits orreviews	The results of any audits or reviews of samplingtechniques and data.	Sampling techniques and procedures are regularly reviewedinternally, as is data. To date, no external audits have beencompleted on the drilling programme.

Section 2 Reporting of Exploration Results (Criteria listed in section 1 will also apply to this section where relevant)

Criteria	JORC Code explanation	Commentary
MineralTenement andLand Status	Type, name/reference number, location andownership including agreements or materialissues with third parties including joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Mt Alexander Project is comprised of five granted ExplorationLicences (E29/638, E29/548, E29/954, E29/962 and E29/972).Tenement E29/638 is held in Joint Venture between St George (75%interest) and Western Areas (25% interest). E29/638 and E29/548 arealso subject to a royalty in favour of a third party that is outlined inthe ASX Release dated 17 December 2015 (as regards E29/638) andthe ASX release dated 18 September 2015 (as regards E29/548).
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	No environmentally sensitive sites have been identified on thetenements. A registered Heritage site known as Willsmore 1 (DAAidentification 3087) straddles tenements E29/548 and E29/638. Allfive tenements are in good standing with no known impediments.
ExplorationDone by OtherParties	Acknowledgment and appraisal of explorationby other parties.	Exploration on tenements E29/638 and E29/962 has been largely forkomatiite‐hosted nickel sulphides in the Mt Alexander GreenstoneBelt. Exploration in the northern section of E29/638 (Cathedrals Belt)and also limited exploration on E29/548 has been for komatiite‐hosted Ni‐Cu sulphides in granite terrane. No historic exploration hasbeen identified on E29/954 or E29/972.
		High grade nickel‐copper‐PGE sulphides were discovered at the MtAlexander Project in 2008. Drilling was completed to test co‐incidentelectromagnetic (EM) and magnetic anomalies associated withnickel‐PGE enriched gossans in the northern section of currenttenement E29/638. The drilling identified high grade nickel‐coppermineralisation in granite‐hosted ultramafic units and the discoverywas named the Cathedrals Prospect.
Geology	Deposit type, geological setting and style ofmineralisation	The Mt Alexander Project is at the northern end of a westernbifurcation of the Mt Ida Greenstones. The greenstones are bound tothe west by the Ida Fault, a significant Craton‐scale structure thatmarks the boundary between the Kalgoorlie Terrane (and EasternGoldfields Superterrane) to the east and the Youanmi Terrane to thewest.
		The Mt Alexander Project is prospective for further high‐gradekomatiite‐hosted nickel‐copper‐PGE mineralisation (both greenstoneand granite hosted) and also precious metal mineralisation (i.e.orogenic gold) that is typified elsewhere in the Yilgarn Craton.
Drill holeinformation	A summary of all information material to theunderstandingoftheexplorationresultsincludingtabulationofthefollowinginformation for all Material drill holes:• Easting and northing of the drill hole collar•Elevation or RL (Reduced Level – elevationabove sea level in metres) of the drill hole collar• Dip and azimuth of the hole• Down hole length and interception depth• Hole length	Drill hole collar locations are shown in the maps and tables includedin the body of the relevant ASX releases.
Dataaggregationmethods	In reporting Exploration Results, weightingaveragingtechniques,maximumand/orminimum grade truncations (e.g. cutting of highgrades) and cut‐off grades are usually Materialand should be stated.	Reported assay intersections are length and density weighted.Significant intersections are determined using both qualitative (i.e.geological logging) and quantitative (i.e. lower cut‐off) methods.For massive sulphide intersections, the nominal lower cut‐off is 2%for either nickel or copper. For disseminated, blebby and matrixsulphide intersections the nominal lower cut‐off for nickel is 0.3%.

Criteria	JORC Code explanation	Commentary
	Where aggregated intercepts incorporate shortlengths of high grade results and longer lengths	Any high‐grade sulphide intervals internal to broader zones ofsulphide mineralisation are reported as included intervals.
	of low grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shownin detail.	Any disseminated, matrix, brecciated or stringer sulphides with(usually) >1% nickel or copper on contact with massive sulphidemineralisation are grouped with the massive sulphides forcalculating significant intersections and the massive sulphidemineralisation is reported as an including intersection.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	No metal equivalent values are used for reporting explorationresults.
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly important inthe reporting of exploration results. If thegeometry of the mineralisation with respect tothe drill hole angle is known, its nature shouldbe reported. If it is not known and only the downhole lengths are reported, there should be aclear statement to this effect.	Assay intersections are reported as down hole lengths. Drill holes areplanned as perpendicular as possible to intersect the target EM platesand geological targets so downhole lengths are usually interpreted tobe near true width.
iagrams	Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported. Theseshould include, but not be limited to a planeviewofdrillholecollarlocationsandappropriate sectional views.	A prospect location map, cross section and long section are shownin the body of relevant ASX Releases.
Balanced	Wherecomprehensivereportingofall	Reports on recent exploration can be found in ASX Releases that are
Reporting	ExplorationResultsisnotpractical,representative reporting of both low and highgrades and/or widths should be practiced toavoid misleading reporting of ExplorationResults.	available on our website at www.stgm.com.au:The exploration results reported are representative of themineralisation style with grades and/or widths reported in aconsistent manner.
Othersubstantiveexplorationdata	Other exploration data, if meaningful andmaterial, should be reported including (but notlimited to): geological observation; geophysicalsurvey results; geochemical survey results; bulksamples – size and method of treatment;metallurgicaltestresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	All material or meaningful data collected has been reported.
Further Work	The nature and scale of planned further work(e.g. tests for lateral extensions or depth	A discussion of further exploration work underway is contained in thebody of recent ASX Releases.
	extensions or large – scale step – outdrilling).Diagrams clearly highlighting the areasof possible extensions, including the maingeological interpretations and future drillingareas,providedthisinformationisnotcommercially sensitive.	Further exploration will be planned based on ongoing drill results,geophysical surveys and geological assessment of prospectivity.